Stock market today: Nifty 50, Sensex extend slide to 2nd day; mid and smallcaps face heavy selling pressure

Indian stock market extended its slide to the second consecutive day on Friday, November 08, as sharp selloff in major large-cap stocks, including Reliance Industries, ICICI Bank, State Bank of India, and Trent, weighed heavily on the frontline indices, causing them to end the session in the red.

The 25-basis point rate cut by the US Federal Reserve on Thursday failed to provide relief to the overheated Indian market, as investor sentiment remained subdued amid concerns over softening Q2 earnings.

Consequently, the Nifty 50 closed the session with a decline of 0.21%, settling at 24,148 points, and ended the week down by 0.64%. The S&P BSE Sensex closed 55.70 points, or 0.07%, lower at 79,486, marking a weekly decline of 0.30%.

Prashanth Tapse, Senior VP (Research), Mehta Equities, said, "After gyrating nearly 700 points in early trades, markets moved in a range-bound manner thereafter and ended marginally lower on selective selling in banking, telecom, metal, oil & gas and realty stocks. Despite the recovery in global indices, Indian markets continue to bore the brunt of FII fund outflows. The US Fed rate cut failed to enthuse local investors as the undertone remains caution with a negative bias."

In contrast, the broader market experienced heavy selling pressure today, with the Nifty Midcap 100 index plunging 1.42% to 56,300. Meanwhile, the Nifty Smallcap 100 index fell to 18,433, down 1.76% from the previous closing level.

Among sectoral indices, the Nifty Realty continued its bearish streak for the second consecutive day, closing nearly 3% lower at 967.7. The Nifty Media index also dropped by 2.09%, while the Nifty PSU Bank, Nifty Oil & Gas, Nifty Energy, and Nifty Metal all ended with losses exceeding 1%.

On the positive side, IT stocks held their ground as the US Federal Reserve's 25 basis point rate cut sparked renewed interest in the sector. The Nifty IT index closed with a gain of 0.71%. Additionally, the Nifty FMCG index bounced back from a sharp sell-off in the previous session, finishing 0.31% higher. The Nifty Pharma and Nifty Auto indices ended the day flat.

Among individual stocks, 23 Nifty 50 constituents closed the session in positive territory, with Mahindra & Mahindra leading the pack, gaining 2.9%. Investors reacted positively to the company's Q2 performance, which exceeded street estimates.

It was followed by Titan Company, Tech Mahindra, Infosys, Nestle India, HUL, Power Grid, Cipla, and three other stocks, all posting gains of over 1%. 

27 Nifty 50 stocks close in the red

A total of 27 Nifty 50 stocks ended today’s session in the red, with Trent emerging as the biggest loser. The stock extended its losing streak to the second consecutive day on Friday following weak Q2 results. It closed with a 3.2% decline at ₹6,298, bringing its two-day slide to 9.5%.

In fact, Trent has been on a downward trajectory since hitting its all-time high of ₹8,345 in mid-October, correcting by 24.52%. Other stocks such as Coal India, Asian Paints, Tata Steel, and 11 others ended Friday's session with losses of over 1%.

Commenting on today's market performance, Vinod Nair, Head of Research, Geojit Financial Services, "Consolidation continued in the market as investors stayed cautious due to disappointment in earnings and the flight of FIIs."

"The US FED continued its rate-cutting cycle to stimulate the economy and is expecting a similar 25-bps rate cut in December policy meet amid moderation in inflation. While inflation in India is estimated to increase in October and the strengthening USD would reinforce RBI to hold the rate in the near-term," he added.

Potential recovery toward 24,500 if support holds

Rupak De, Senior Technical Analyst, LKP Securities, said, "The 24,000 level is expected to serve as strong support for the index. If it holds above this level, Nifty bulls may still have an opportunity to regain momentum. However, a break below 24,000 could further weaken the market. The RSI indicator remains in a positive crossover, indicating that short-term momentum is likely to stay strong. In the near term, the index may recover toward 24,500, but a dip below 24,000 could lead to a market correction."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.